Catalyst Pharmaceuticals Inc (CPRX)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	71,410	62,037	115,549	99,406	83,079	66,917	54,498	45,060	39,482	41,610	74,621	72,220	74,983	71,476	41,766	42,946	31,875	9,445	-12,024	-28,949
Total stockholders’ equity	US$ in thousands	387,881	348,548	375,294	333,661	300,421	270,041	241,092	220,221	206,831	198,661	188,944	178,651	169,598	156,628	111,201	99,676	87,630	77,983	63,282	51,176
ROE		18.41%	17.80%	30.79%	29.79%	27.65%	24.78%	22.60%	20.46%	19.09%	20.95%	39.49%	40.43%	44.21%	45.63%	37.56%	43.09%	36.37%	12.11%	-19.00%	-56.57%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $71,410K ÷ $387,881K
= 18.41%

The return on equity (ROE) for Catalyst Pharmaceuticals Inc has shown fluctuation over the given period. In general, a higher ROE indicates that a company is more efficient at generating profits from its shareholders' equity.

Looking at the trend in ROE, we see that it has generally been on an upward trajectory since the beginning of 2020, reaching a peak of 45.63% in March 2021. This may indicate that the company has been effectively utilizing its equity to generate profits during this period.

However, there are some fluctuations in the ROE figures, such as the significant decrease to -19.00% in September 2019 and -56.57% in March 2019. These plunges could be a cause for concern, suggesting potential inefficiencies or challenges within the company during those periods.

Despite the overall positive trend in ROE, it is important to further investigate the factors that have influenced these fluctuations to gain a more comprehensive understanding of Catalyst Pharmaceuticals Inc's financial performance. Additionally, comparing the company's ROE to industry peers and analyzing other financial ratios could provide further insights into its financial health and performance.